Consumer characteristics and incentives to buy labelled regional agricultural products, Richard Bannor and Steffen Abele
Richard Kwasi Bannor
Department of Agricultural Economics, Agribusiness and Extension
University of Energy and Natural Resources, Sunyani
Ökonomie ländlicher Räume Hochschule für Forstwirtschaft Rottenburg, Rottenburg
Purpose: Rooted in the social identity theory (SIT), the study analysed the effect of consumer ethnocentrism as well as other factors on the purchase of labelled regional agricultural products together with the readiness to purchase the labelled regional products at a premium price in Germany.
Design/methodology/approach: The determinants of the consumption of labelled regional agricultural products and the readiness to pay a premium price for the same in Southwestern Germany were analysed via both probit and ordered probit regressions, respectively.
Findings: Consumer ethnocentrism influences the purchase of labelled regional agricultural products as well as the readiness to purchase at a premium price. Also, consumer socioeconomic and product characteristics and knowledge and perceived benefits of regional products had a divergent influence on the purchase and readiness to purchase labelled regional agricultural products at a premium price.
Research limitations/implications: In terms of limitation, even though the sample size was proper, it could be improved in other studies to validate the findings. Also, the study was limited to a limited number of counties in Southwestern Germany; hence future studies could explore a more extensive geographical space within the region.
Practical implications: The results can serve as a good source of information for improving the marketing of regional agricultural products. This study recommends that regional producers and marketers brand regional products with the region's name to capitalise on consumers' ethnocentric tendencies in the region. Further, regional products have to be sold in places where consumers with a certain degree of ethnocentrism are present. Results provided by this study are commonly applicable for all products, regardless of the type and regional origin, so that product-specific studies are no longer necessary, which reduces redundancy and marketing research costs, which are difficult to bear for small producers.
Originality/value: Germany has benefited immensely from the boom of regional marketing in Europe. Likewise, in Southwestern Germany, there is a growing interest in the production and marketing of regional products. As a result, several studies have investigated the factors influencing the purchasing of regional products in Germany. Nevertheless, literature and studies on the effect of ethnocentrism on the purchasing of regional agricultural products in Southwestern Germany are scanty.
Keywords: Ethnocentrism; Regional products; Marketing; Social identity theory.
Citation: Bannor, R.K. and Abele, S. (2021), "Consumer characteristics and incentives to buy labelled regional agricultural products", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 17 No. 4, pp. 872-888. https://doi.org/10.1108/WJEMSD-12-2020-0173